Chapter 34 Industrial "Trusts" Disrupt Shanxi's Coal Policy Situation

Time entered the late eighties of last century. At that time, the coal market in Shanxi continued to rage, and many people regarded coal mine pits as "golden mouths" that would spit out money, and investment in the coal industry as a "good project" with huge profits.At this time, a large number of domestic and foreign investment consortiums and enterprises caught in the "investment hunger" set their sights on Shanxi.Under the background of the market competition between "domestic capital" and "foreign capital", a new "advanced" industry class has emerged as the times require, and this is "miner speculators".

According to industry insiders, these "miner speculators" who are active in coal-producing areas in Shanxi usually use huge sums of money to buy some coal mines with "potential".The "potential" coal mines mentioned here mainly refer to "black holes".Generally speaking, because township or village-run coal mines are generally "informal", there will always be "problems" of one kind or another. Improve coal mining conditions, expand production, etc., and then pass it on to others.After their "frying", it is actually a "re-rinsing" or "re-processing" of a coal mine from "black" to "white".As a result, there is an additional "coal mine" in the market that may double or even exceed the "sale price".

"'Mine speculation' has caused a serious waste of coal resources. This is because the legal representative of the coal mine changes frequently. In order to maximize profits during the previous investor's tenure, the mine owner will often go crazy at all costs. A low recovery rate ends the life of a coal mine." An industry insider commented on this phenomenon. In this industry, "mine speculators" often proceed from their own interests, and generally do not easily take over a "mature mine", but prefer "raw mines" that lack mining capacity.

"Cooked mine" is another name for coal mines with "complete procedures" and "standard management" by local people (such coal mines have been systematically mined by mine owners on a large scale).Generally speaking, this kind of coal mine is the "leftovers" that have been "eaten and squeezed" in the hands of the "original owner", and "no one wants" in the coal market. In fact, the previous mine owner left a formal coal mine, which is basically equivalent to a scrapped coal mine, and it would take a very high price to reorganize.Shanxi Province has strict approvals for new coal mines, which means that no new coal mines will be approved. Investors can only look for opportunities in previously approved coal mines.

The fate of "raw mine" is the opposite. "Raw mine" generally refers to "black hole".Due to the "congenital deficiency" of such mine owners in terms of capital and technology, the mining capacity is limited.In front of a mine with abundant coal reserves, although the coal boss tried his best, at best he just gnawed a "small gap" on a piece of gold ingot.This means that the foundation of the mountain has not been shaken, and the "miner speculators" have taken a fancy to this.As for changing the "color" of a "black hole" from "black" to "white", that is the "natural strength" of the "miner speculators" with great powers.

Here, while we pay attention to the current situation of the Shanxi coal mine market, we must also mention another group related to it, that is, the "Wenzhou coal frying group" from Zhejiang. Preliminary statistics from relevant departments in Shanxi say that there are currently more than 500 coal merchants in Wenzhou in Shanxi, but some people estimate that the actual number may be around 5,000.For a period of time, many legendary experiences surrounding the "Wenzhou coal frying group" making a fortune in Shanxi have been constantly being recited by people. I have been in the clothing business for several years, and I have a little savings on hand. Under the "recommendation" of friends or fellow villagers, I went to Shanxi to buy coal mines and operate them.Under normal circumstances, an investment of 10 to 20 million yuan can be recovered in two or three years.

This is the "general track" for Wenzhou investors to go to Shanxi to pan for gold. According to Shanxi official data, as of the first half of 2009, Shanxi had nearly 4,000 coal mines of various types and nearly 5,000 mine shafts. Among these mines, 70% had an annual output of less than 90,000 tons.The mines contracted by Wenzhou businessmen have a basic output of less than 90,000 tons. This type of coal mine is uncertain about life and death in the vigorous "Shanxi Coal Integration", and its future is bleak. Keep going, or turn around in time?In their eyes, these "golden nests" that used to earn a lot of gold dollars for themselves have now become a quagmire that ruins their dreams of wealth.

This is a choice that cannot be faced by Wenzhou bosses who have already spent hundreds of millions of dollars out of their pockets.